CooMrvillMi Resources 
Lig*Frecf» Type I 
Ph 8Ju Bnfiered 



DUTH Congress, ) HOUSE OF REPRESENTATIVES. J Rkport 

M S€ssl07i. S I No. 2318. 



PAYMENT OF CERTAIN MONEYS ADVANCED BY MARY 
LAND AND VIRGINIA. 



FicBKrARY 23, 1909. — Ordered to be printed. 



Mr. Miller, from the Committee on Claims, submitted the following 

ADVERSE REPORT. 

[To accompany S. 5252.] 

The Committee on Claims, having had under consideration Senate 
bill 5'252, for the payment of certain moneys advanced by Maryland 
and Viro-inia to the United States, submit the foliowino- report: 

The committee recommend that the bill be adversely reported, and 
as this is a matter of interest to the people of two States, Maryland 
and Virginia, the committee think it proper that it should furnish the 
House with a complete statement of the facts in the case so as to jus- 
tify the House in approving- the report of the committee. 

This claim is based upon the action taken by the States of Maryland 
and Virginia prior to the establishment of the seat of Government at 
its present location. It is shown by an act of the general assembly of 
Virginia, passed December 3, 1789 (ISHenning, 33), that the establish- 
ment of a *■• situation for the seat of the General Governraeiiit, central 
and convenient to the citizens of the United States at large, having 
due regard to population, extent of territory, and a free navigation 
to the Atlantic Ocean through the Chesapeake Bay, as well as ready 
comnmnication with our fellow-citizens on the western frontier, '"* en- 
gaged the attention of the said general assembly, and on the 10th of 
December that general assembly passed the following: 

Resohi'd by the general ass^embly of Mrqwkt, That a copy of the foregoing act of the 
third of December, seventeen hundred and eij-^hty-nine, be transmitted to the 
general ap.«eml)ly of Maryland without delay, and that it be proposed to the said 
assembly to unite with this legislature in an application to Congress that in caso 
Congress shall deem it exjiedient to establish the permanent seat of government of 
the United States on the banks of the Potomac so as to include the cession of either 
State, or a part of the cession of both States, thi.s assembly will pass an act for 
advancing a sum of money, not exceeding one hundred and twenty thousand dollars, 
to the use of the General (government, to be applied in such manner as Congress 
shall direct, toward erecting public buildings, the said assembly of INIarylau't on 
their part advancing a sum not less than two-tifths of the sum advanced by this State 
for the like purpose. 



vi^n 



2 PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. 

The resolution of the general assembly of Virginia, of the date 
December 10, 1789, was not acted upon by the general assembly of 
Maryland until November, 1790, when the following action was taken: 

Whereas by a resolution of the general assembly of Virginia, passed on the 10th 
day of December, 1789, it was proposed to the general assembly of Maryland tliat 
the general assembly of Virsiinia will pass an act for advancing a sum of money, not 
less than one hundred and twenty thousand dollars, to the use of the General Gov- 
ernment, and to be applied in such manner as Congress shall direct, toward erecting 
public buildings, the assembly of Maryland on their part advancing a sum not less 
than three-fifths of the sum advanced by the said general assembly of Virginia; 
which resolut.on came so late to the last general assembly of Maryland that it could 
not be acted upon, and was therefore referrtd to this present session; and 

Whereas this general assembly doth highly approve of the object of said resolution, 
and is desirous of doing everything required on the part of Maryland for carrying 
the same into effect; on a second reading of said resolution, 

Rexo'red, That this house doth accede to the proposition contained in said resolu- 
tion of the assembly of Virginia, and will advance to the President of the United 
States, for the purposes mentioned in said resolution, the sum of seventy-two thou- 
sand dollars, payal)le to his order in three equal yearly payments. 

That preamble and resolution from the general asseml)ly of Mary- 
land was communicated to the general asseml^ly of Virginia, and on the 
24th of December, 1790, the following act was passed: 

Whereas the general assembly of Maryland have acceded to a proposition of the 
general assembly of this Commonwealth contained in their resolution of the tenth 
day of December, seventeen hundred and eighty-nine, concerning an advance of 
money to the General Government to be applied toward erecting public buildings at 
the permanent seat of the Government of the United States, should the Congress 
deem it expedient to fix it on the bank of the Potomac; and whereas Congress has 
passed an act for establishing the said seat of Government on the Potomac: 

Jk it tnarted bij the gericral assemtdii, That one hundred and twenty thousand dollars 
shall be advanced by this Commonwealth to the General Government, payal)le in 
three equal yearly payments, and to be applied toward erecting public buildings at 
the permanent seat of the (Government of the United States on the bank of the Poto- 
mac; and the auditor of public accounts is hereby directed to issue his warrants on 
the treasurer to the amount of one hundred and twenty thousand dollars, payaV)lein 
the manner hereinbi^ore directed, to the order of the President of the United States. 
(See 13 Henning, 125.) 

If this were all there was to be considered in connection with the 
location of the capital it might be inferred that the States of Mary- 
land and Virginia intended the amounts of money respectively fur- 
nished by them, to wit, $72,000 and $120,000, to 'be a loan to the 
Government of the United States for the purpose described in the 
acts of their respective assemblies; but in order that the proper mean- 
ing of the language in said acts might be presented to the House the 
committee have thoroughly investigated all of the conditions existing 
at the time said action was taken, and present herewith as fully as 
possible the events of that period. 

Maryland, by an act of its general assembly passed December 23, 

1788, directed its representatives in the House of Representatives of 
the Congress of the United States to cede to the Congress of the United 
States any district in said State, not exceeding 10 miles sqitare, which 
the Congress might fix upon and accept for the site of government; 
and Virginia by an act of its general assembly of date December 3, 

1789, ceded a like tract of any lesser quantity of Virginia territory 
for the same purpose. 

AJJ ACT For establishing the temporary and permanent seat of the Government of the United States. 

Section 1. Be it enacted by the Senate and House of Representatives of the United States 
(ff America in Congress assembled, That a district of territory, not exceeding ten miles 



D. at n. 



PAYMPJNT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. 6 

square, to be located as liereafter direc-ted on the river Potomac, at some place 
between the mouths of the Eastern Branch and the Conocochcagiie, be, and the 
same is lierehv, accepted for tlie permanent seat of the Uoverninent of the United 
States: Prondtd iiev>'rtlit'U'iis, Tliat tlie ojieration of the laws of the State within such 
district shall not be affected by this acceptance, until the time lixed for the removal 
of the (iovernment thereto, and until Con^ire^s shall otherwi>e by law provide. 

Skc. 2. Atid heit further cnndeil, That the President of the United States be autlior- 
ized to appoint, and by snpi)lyin^' vacancies happening; from n fii.-als to act or other 
causes, to keep in appointment as lonji: as may he necessary three comndssioners, 
who, or any two of whom, shall, under the direction of the President, survey, and 
by proper metes and liounds define and linut a district of territory, under the linn- 
tations above mentioned; and the district so defined, limited, and located shall be 
deemed the district accepted by this act for the permanent seat of the Ciovernment 
of the United States. 

Sec. ;1 And be it (further) enacted. That the said comndssioners, or any two of 
them, shall have power to purchase or acicept such quantity of land on the eastern 
side of the said river, within the said district, as the President shall deem proper for 
the use of the United, States, and, accordinji to such plans as the President shall 
approve, the said commissioners, or any two of them, shall, prior to the first Monday 
in Decend^er in the year one thousaiKfeight hundred, provide suitable buildings for 
the accommodation "of (Jongress and of the President and for the jtublic offices of 
the Government of the United States. 

Sec. 4. And l,e it [further) emirted, That for defraying the expense of such pur- 
chases and linildings the President of the United States be authorized and requested 
to accept grants of monev. 

Sec. 5. And be it (further) enacted, That prior to the first Monday in December 
next all offices attached to the seat of the Government of the United States shall be 
removed to and until the saiil first Mondav in December in the year one thousand 
eight hundred shall remain at the city of Philadelphia, in the State of Pennsylvania, 
at which place the session of Congress next ensuing the present shall be held. 

Sec. H. And be it (further) enacted, That on the said first Monday in December, in 
the year one thousand eight hundred, the seat of the (Tovernment of the United 
States shall, bv virtue of this act, be transferred to the district and place aforesaid. 
And all offices- attached to thesaid seatof (iovernment shall accordingly be removed 
thereto by their respective holders, and shall, after the said day, cease to be exercised 
elsewhere; and that the necessary expense of such removal shall be defraved out of 
the duties on imposts and tonna<ie, of which a sufficient sum is hereby ajipropriated. 

Approved July 16, 1790. .(1 Stats., l.SO. ) 

AN ACT To'cede to Congress a district of ten mile.'* square in th's State [Maryland] for the seat^of 
" the Government of the United States. (Approved December 23 1788.) 

Be it enacted by the qeneral aayeiniihi of Mari/kmd, That the representatives of this 
State in the House of "Representatives of tlu^ Congressof the United States, ap})ointed 
to assemble at New York on the first Wednesday of March next, be, and they are 
hereby, authorized and required, on behalf of this State, to cede to the Congress of 
the Uid'ted States any district in this State not exceeding ten miles square, which the 
Congress may fix upon and accept for the seat of (.Tovernment of the United States. 

AN ACT For the cession of tenrmiles sqiiare^ir any le-si r quantity of territory within this State 
[Virginia] to the tjnited States in Congre.ssjussenibltd foi the permanent seat ol the General Gov- 
ernment. (Approved December 3, 1789.) 

1. Whei-eas the eqnal^and common l)enefits resulting from the administration of 
the General Government will be best diffused and its operations b. come more prompt 
and certain by establishing such a ,-ituation for the seat of said Government as will 
be most central and convenient to the citizens of the United States at large, having 
regard as well to poi)ulation, extent of territory, and free navigation to the Atlantic 
Ocean through the C!hesapeake Bav, as to the most direct and rea:ly communication 
with our fellow-citi/ens in the Western frontiers; and whereas it appears to this 
assembly that a situation comlMuins all the con-iderations and advantages before 
recited may be had on the banks of the river Potomac, aliove tide water, in a country 
rich and fertile in soil, healthy and salul)rious in climate, and abounding in all the 
necessaries and conveniences of life, where, in a location of 10 miles .square, if the 
wisdom of Congress shall so direct, the States of Pena.sylvania, Maryland, and Vir- 
ginia mav participate in such location: 

2. Be U therefore enacted bi/ the general ns^Rs^embly, That a tract of country not exceed- 
ing ten miles square, or any lesser quantitv, to be located within the limits of this 
State, and in any part thereof as Congress may by law direct, shall be, and the same 



4 PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIROINIA. 

is, forever ceded and relinquished to the Conp;ress and Government of the United 
States, in full and absolute right and exclusive jurisdiction, as well of soil as of per- 
8 ns residing or to reside thereon, purtiiiant to the tenor and effect of the eighth 
section of the first ai tide of the Constitution of the Goveriuiient ot the L'nited States. 

3. FrovUh'd, That nothing herein contained shall be herein construed to vest in 
the Unitt d States any right of property in the soil, or to affect the lights of individuals 
therein, otherwise than the same shall or may be transferred by such individuals to 
the United States. 

4. And ])roride(l aho, That the jurisdiction of the laws of this Commonwealth over 
the persons and property of individuals residing within the limits of the cession 
aforesaid shall not cease or determine until Congress, having acrepted the said cession, 
shall by law provide for the government thereof, under their jurisdiction, in the 
manner i)rovided by the aiticle of the Constitution before recited. 

AN ACT Concerning the advance of money to the Government of the United States for public 

buildings. 

Whereas the general assemt)ly of Maryland has acceded to a proposition of the 
general government of this Commonwealth, contained in their resolution of the 
tenth (lay of December, seventeen hundred and eighty-nine, concerning an advance 
of money to the (leneral Government to be applied toward the erection of public 
buildings at the permanent seat of the Government of the United States, should Con- 
gress deem it expedient to fix it on the lianks of the Patowm ck; and whereas Con- 
gress have passed an act for establishing the said seat of government on thePatown ack: 

Be it eniicted by tlie cii')ieral assembly \_oi Virginia], That one hundred and twenty 
thousand dollars shall be advanced by this Commonwealth to the General Govern- 
ment, payable in three ecjual yearly payments, and to be applied toward erecting 
public buiklings at the p rmanent scat of government of the United Sta'es on the 
banks of the Patowmack, and the auditor of public accounts is hereby directed to 
issue his warrants on the treasurer to the amount of one hundred and twenty thou- 
sand dollars, payable in the manner hereinbefore directed, to tiie order of the Presi- 
dent of the United States. 

Passed December 27, 1790. 

[seal.] George Washington, President of the United States, to all who shall see 
these presents, greeting: 

Know ye that reposing special trust and confidence in the integrity skill and dili- 
gence of Thos. Johnson and Daniel Carroll, of Maryland, and David Stuart, of Vir- 
ginia, I do, in pursuance of the powers vested in me by the act entitled "An Act for 
establishing the temporary and permanent seat of the Government of the United 
States" approved July 16, 1790 hereby appoint them, the said Thomas Johnson, 
Daniel (Carroll, and David Stuart, commissioners for surveying the district of terri- 
tory accepted by the said act for the pennanent seat of the Governmi nt of the 
United States, and for performing such other offices as by law are directed, with full 
authority for thein, or any two ol them, to proceed therein according to law, and to 
have and to hold the said office, with all tlie powers, privileges and authorities to 
the same of right appertaining each of them, during the pleasure of the President 
of the United States for the time being. 

In testimony whereof I have caused these letters to be made patent and the seal 
of the United States thereto affixed. 

Given under my hand at the city of Philadelphia, the twenty-second day of 
January, in the year of our Lord one thousand seven hundred and ninety-one and 
of the independence of the United States the fifteenth. 

George Washington. 

By the President: 

Thomas Jefferson. 

AN ACT To amend "An act for establishing the temporary and permanent seat of the Government 

of the United States." 

Be it enactrd by the Senate and House of J'epreseiitatires of the (inted Stales of America 
inCovffre>-sase)id)/ed, That so much of the act entitled "An act for establishing the 
temporary and permanent seat of the Government of the United States" as reiiiiites 
that the whole of the district of territory, not exceeding ten miles .scjuare, to be 
located on the river i'otoniac, for the permanent seat of the Government of the 
United States, shall be located altove the mouth of the Eastern Branch, be and is 
hereby repealed, and that it shall be lawful for the President to make any part of 
the territory below the said limit, and above the mouth of Hunting Creek, a part of 
the said district, so as to include a convenient part of the Eastern Branch, and 



PAYMENT OF MONEYS ADVANCED HY MARYLAND AND VIKOINIA. 5 

of the lands lyin<r on the lower side thereof, and also the t(jwn of Alexandria, and 
the territory so to be incln<led sh ill form a |)art of the district not exeeedinf: ten 
miles S(iuare, for the iiernianent seat of the CJovernnicnt of the United States, in like 
manner and to all intents and pnrposes as if the same had been within the pnrview 
of the above recited act: Pmvidcd, That nothing,' herein contained shall anthori/.e tlie 
ereclion of the public buildin<js otherwise than on the Maryland side of the river 
Potomac, as re(]uired by the aforesaid act. 
Approved March :5, 1791. (1 Htats., 2N.) 

Conoress first convened at Pliiludelphia, September 5. 1774, and 
afterwards held sessions in the followiiio- ]>laces: l*hiladelplii;i, Lan- 
caster, Baitimon', New York City, Yorktown, Princeton, York, 
Trenton, and Annapolis, and at the time of the location of the capital 
the foUowiiio- places were tr\'in,o- to secure the same: Phihidelphia, 
Baltimore, Lancaster, York.* Princeton, Annapolis, Williamsburg, 
Trenton, New York City, Williamsport, Germantown, Carlisle. Har- 
risbuig, Readino-, Georgetown, and the present site. And the follow- 
ing places entered into competition, by bids and otherwise, for the 
location of the capital. We find the following language taken from 
the Congressional Proceedings of June 4, 1783: 

Be it reso/red, That copies of the act of the legislature of Maryland, relative to the 
cession of the city of Annapolis to Congress for their permanent residence; and also 
copies of the act of the legislature o: New York, relative to the cession of the town 
of Kingston for the same purpose, together with the i)apei's which accompanied both 
acts, be transmitted to the executives of the respective States, and that tlVey be 
informed by the President that Congress have assigned the first Monday in October 
next for taking the said offers into consideration. 

Maryland and New York were the first to enter the arena. Later, 
however, both Maryland and Virginia offered 10 square miles for 
capital purposes, and offered to advance and did advance. th(^ former 
$72,000 and the latter §120,000. 

On the 7th of April, 1788, New York appropriated its public 
buildings to the use of the new Congress. Philadelphia did likewise 
for that citv. Baltimore offered a large tract of land and i-aised 
<£30,000 in money, which was offered as an inducement to secure the 
capital at Baltimore, On Tuesday, September 8, 1789, a petition was 
presented by the inhabitants of Georgetown in the State of Maryland, 
ofiering to put themselves and theii' fortunes under the exclusive 
jurisdiction of Congress in case that town should be selected as the 
permanent seat of the (iovernment of the United States. 

A district 10 miles square, including the l)orough of Wilmington, in 
the State of Delaware, was offered, and when this offer was under 
consideration in Congress on Septeinber 17, 1789, the following was 
provided: 

That no cession be accepted until acts should be passed by the States of Maryland 
and Pennsylvania to open a water communication between the bays of Chesapeake 
and Delaware. 

On September 2(!, 1780, a ]:)etition was presented by the people of 
Germantown asking for the location of the capital at that place, and 
offering a district of 10 miles square. On August 22, 1789, a memorial 
of John Cox and others, of the States of New York and Pennsylvania, 
was presented to Congress, asking for the seat of government to be 
established on the banks of the Delaware, and offering a cession of a 
tract of land U) miles s<]uare, including the borough of Lancaster, and 
also at the same time nominated ^Vrigllts Ferry, on the Susquehanna, 



6 PAYMENT OF MONEYS ADVANCED BY MAKYLAND AND VIRGINIA. 

Yorktown, west of the Susquehanna, Carlisle, west of the Susque- 
hanna, Harrisl)ui'o', west of the Susquehanna, Reading, on the Schuyl- 
kill, and Gerniantown, in the neighborhood of Philadelphia, as different 
places in Penns\'lvania which had been proposed for the permanent 
seat of government of the United States; and on September 21, 1789, 
IVlr. Morris introduced the resolution of the general assembly of the 
State of Pennsylvania of March 5, 17^9, making otier to Congress of 
the use of any or all of the public buildings in Philadelphia in case 
Congress should at any time incline to make choice of that city as a 
capital. 

The permanent seat of the Government was established by the act of 
July 1(), 1790 (1 Stat., 30), and under the fourth section of the act the 
President was ''authorized and requested to accept grants of money." 

On January S, 1796, President Washington transmitted to the Con- 
gress a memorial of the conunissioners of the city of Washington on 
the subject of the public buildings under their direction, and stating 
that he had accepted the grants of money and of lands stated in the 
memorial. The memorial contains the following: 

That the State of Virginia has paid one hundred and twenty thousand dollars, 
which had been previously offereil by an act of the legislature, on condition that 
Congress would establish the permanent seat of Government on the banks of the 
Potomac, to be applied, under the direction of the President of the United States, 
toward erecting the necessary buildings for the Federal overnment; and that the 
State of Maryland hath paid seventy-two thousand dollars for the same purpose. 
(American State Papers, vol. 1, p. 133.) 

Also on pages 243-2-16 of the same volume will be found a report of a 
committee of the House of Representatives, Fifth Congress, second 
session, containing an account of receipts and expenditures by the 
commissioners of the city of Washington from the time of their appoint- 
ment to the 18th of Ma}^, 179(5, in which the following entries appear: 

Donation by the State of Virginia, $120,000. 
Donation by the S.ate of Maryland, $72,000. 

We here quote from Spofford's History : 

The establishment of the national capital of the United States involves so many 
particulars of historical interest that no apology seems necessary for devoting to it 
the larger portion of this paper. In doing this it will be my aim to touch with the 
grc^atest brevity on tliose portions of the history which have tjeen fully bi-oughtout in 
the various publications on the subject, devoting the more attention to other 
individuals. 

The Continental Congress, during the progress of the Revolutionary struggle, was 
never long Hxed in any one location Its sessions were convened at eight different 
places in tour different'states, viz, Philadelphia, Baltimore, Lancaster, York, Prince- 
ton, Annapolis, Trenton, and New York City. 

The bill then (September 22, 1789) went to the Senate, where it was discussed 
three days, but as the Senate sat with closed doors no records of the debates in that 
body we're preserved prior to December, 1799. Here it was moved to strike out the 
words "in the State of Pennsylvania" from the bill, so that the jjlace selected might 
be on the Maryland bank of the Sus(|nelianna, if tlionght proper. This was lost- 
ayes 8, noes 10. A nidtion to substitute the Potomac for the Susquehanna was lo.st, 
vote not given. It was then moved to locate the pern:)anent capital in a district 10 
miles S(juare at Gerinantown, Pa., on the Delaware, including such part of the 
Nurthern Liberties of L'hiladelphia as were not excepted by act of cession of that 
State. This was lost by a tie vote — 9 to 9, but \'ice-P.'-esident Adams voting yea set- 
tled the (juestion in the affirmative. In this vote the Northern and Eastern States 
were solid for Gerniantown, exceiit Maclay, of Pennsylvania, who voted against it, 
while the Southern States were solid against it, except the two Senators from Dela- 
ware. A ])roviso was adoi)ted recjuiring Pennsylvania to pay $100,000 toward the 
erection of the public buildings at Germantown, and the bill passed September 26 — 
yeas 10, nays 7. 



PAYMENT OF MONEYS ADVANCED HY MARYLAND AND VIRGINIA. 7 

At the next meeting of ConKref^s, January 4, 17i)0, ntill at Now York, several 
months ehipseil before the quesiiim of the seat of tioverniiient was reopened. 

N'ery en<ir()i<!<iii}; l)iibiness eonnected with the revt'nue, tiie fumliiij^ of the pnV)lio 
debt, ete., occupied the attention of both Houses. On the I^lst of May an attempt 
was made in the House to .-settle the (piestion w here tlie Congress should hold its next 
session. Philatleipliia was proposed a.s the proper place, aa a considerahle majority 
had last session decidetl for Germantown as the seat of government Mr. iSinith, of 
Maryland, moved to meet in Baltimore, as more central; its commerce was great, 
its inhabitants had raised a subst rijition of between 120,0(0 and t;.';0,(i()0 to erect 
suitable accommodations for the Members, and the legislature had offered to cede to 
Congress 10 miles stjuare of territory. 

Ni)rth Carolina came into the Union with her five congressional votes just in time 
to take part in the settkment of a permanent seat of government and to decide the 
question in favor of the Potomac. We liave seen that at the first session, in 1789, 
there was a very decided majoiity against any site so southerly; that (jermantown 
had afterwards been agreed to by hotli Houses, though by very small majorities; 
that the Susciuehanna had been carried as the site l>y a h< avy majority in the House; 
that in the earlier stages of the secolid session, in ITiiO, Congress was tro closely 
absorbed with questions of revenue and public debt to consider tlie sulijectof the 
caj'ital city, and that finally, alter long and sometimes acrimonious debate, a site on 
the Potonlac was accepted by a majority of two votes in the Senate and three votes 
in the House. Tho.-^e votes, moreover, could not have been obtained had North 
Carolina not come into the Union in the meanwhile or had Pennsylvania sided with 
the northern vote as against the southern location. 

Mr. Jefferson has recorded in his Ana a remarkable piece of ])rivate history 
regardin<r ti e final adoj)tion of the Potonuic site for the national cai)ital. According 
to this statement, the session of 17^)0 was marked by an obstinate struggle over 
Hamilton's favorite scheme of the assumption of the state debts, amounting to 
$20,000,000. This was at first deleated in the House; Hamilton was anxious and 
excited; he urged Jefferson to aid in securing its reconnnendation, sayirg that tho 
Eastern or creditor states were dissatisfied, and threatened secession and dissolution 
if their claims were not considered. Says Mr. Jefferson: 

"I proposed to him to dine with me" the next day, and T would invite another 
■friend or two aufl bring tliem into conference together, and I thouglit it impossible 
that reasonable men, consulting together coolv, could fail by some mutual cacrilicta 
of opinion, to form a compromise whic-h was to save the Union. The discussion 
took place. It was tinally agreed that whatever importance had Ik en attached to 
the rejection of this proposition, the preservation of the Ui.ion and of concord among 
the States was more important, and that therefore it would be better that the vote 
of rejection should be rescinded, to effect which some Memliers should change their 
votes. But it was observed that this jill would lie pei'uliarly bitter to the Southern 
States, and that some concomitant measure should be adopted to sweeten it a little 
to them. 

"There had before been propositions to fix the seat of government either at Phila- 
delphia or at Georgetow-n on the Potomac; and it was thought by giving it to 
Philadelphia for two years and to Georgetown permanently afterwards this might, 
as an anodyne, calm in sonie degree the ferment which might be excited by the other 
measure alone. So two of the Potomac Members (White and Uee, but White with 
a revulsion of stomach almost convulsive) agreed to change their votes, and Hamilton 
undertook to carrv the other point. In doing this the influence he had established 
over the eastern Members, with the agency of Robert Morris with those of the Middle 
States, effected his side of the engagement; and so the assumption was passed, and 
twenty millions of stock divided among favored States and thrown in as a pabulum 
to the" stockjobbing herd." 

So far :Mr. Jefferson's statement has been generally accepted as a part of the history 
of the times. 

It is a noteworthy fact that this act of Congress, adopted after so long and seripua 
a division of opinion, fixed absolutelv no definite plai'C for the site of the capital city. 
It gave the President of the United States the sole j)Ower to select any site on the 
river I^otomac, between the mouth of the Kastern Branch (or Ai-acostia) and the 
mouth of theConocorheague; in other words, within a distanceof alont 105 miles (fol- 
lowing the river windings ) from the present site of Washington to where the Conoco- 
cheasiue joins the Potomac at Williamsport, Washington County, about 7 miles from 
Hagerstovvn, :\Id. Here was a wide latitude of choice indeed to le con tided toone man. 
It was in the power of Washington, under the jirovisions of this act, to have founded 
the national capital at Harpers Ferry, 50 miles west of Baltimore, instead of at a 
place 40 miles south of it. He might even have located it, at his discretion, at the 
mouth of the Conococheague itself, 100 miles farther up the river than the present 



8 PAYMENT OF M0NP:YS ADVANCED BY MARYLAND AND VIRGINIA. 

capital; and there is a contemporaneous letter of Oliver Wolcott which says: "In 
I8U0 we are to ^o to the Inrlian place with the loiiy name on the Potomac." 

Washington, however, with that consummate judgment which distinguished his 
career, fixed upon just the one spot in the entire range of the territory dcscti ;ed by 
Congress, which commauiied the threefold advantages of unfailing tide-water navi- 
gation, convenient access from Baltimore and the other great cities northward, and 
the superb natural sites for public buildings and for the varied wants of a populous 
city. The " magnificent distances," once the tli 'me of so much cheap ridicule, are 
found not a whit too liberal, now that the capital has grown from a struggling village 
into a well-built and well-paved emporium for a population which, though not 
placing it in the first rank of cities, gives it at least an enviable place in the second 
rank. 

Both Virginia and Maryland took the most active and zealous interest in the estab- 
lishment of the National Cajntal on their borders. With co-terminous territory for 
nearly 300 miles, separated by the great natural boundary of the Potomac, these 
prosperous ("ommonwealths had every motive to unite in whatever should bring 
population and wealth to develop their gieat natural advantages, and to imi)rove the 
navigation of the river. With a liberality equal to the occasion, Virginia voted 
$120,000 in money as a free gift to the I'nited States (iovernment to aid in erecting 
the public buildings, and Maryland appropriated §72,000 to the same object, a sum 
which was relatively a very large one in that day of small things. This not proving 
to be sufficient, and the Congre.'^s at Philadelphia not coming forward with apjiro- 
priations, as had been expected, Washington was induced to make a personal appeal 
to the State of Maryland for a loan. He told Governor Stone that the commission- 
ers had attempted in vain to borrow in Europe to carry on the r)ublic buildings, and 
he knew of no place in the Uniteil States where application could be made with 
greater propriety than to the legislature of Maryland, "a State where the most anxious 
eolicitude is presumed to be felt for the growtJh and prosperity of that city which is 
intended for the permanent seat of government for America." The appropriation 
was granted, and the legislature accompanied the act authorizing the loan of $100,000 
with a testimonial of their high regard for the President, while they were care ul to 
require the personal security of the commissioners (so low was then the credit of the 
United States) in guarantee of the repayment of the loan. 

The loan of §100,000 above referred to was of date Januiuy '24:, 
1707, and on January 27, 1798, Maryland ao-.dn loaned $100,000 and 
required the same kind of security. Both of these loans were to draw 
interest at the rate of 6 per cent and the interest and prhicipal were 
afterwards paid, the final pa3anent being made on Januarj' 7, 1808. 

The committee calls the attention of the House to the fact that' on 
September 2.5, 1789, the Senate of the United States amended a bill 
then before it so as to read as follows: 

And he it further enacled, That the President of the United States be authorizea to 
appoint three commissioners, who are, unde ' his direction, to loc;ate a district, not 
exceeding ten square miles, in the said counties, and including therein the said 
Northern Liberties and town of Germantowu, and to purchase such (piautity of land 
within the same as may be necessary, and to accept grants of land for the use of the 
United States, and to erect thereon, within four years, suitable buildings for the 
accommodation of the Congress and of the officers of the United States — 

and further amended the bill by providino- — 

That no powers herein vested in the President of the United States shall be carried 
into effect until the State of Pennsylvania, or individual citizens of the same, shall 
give satisfactorv sec;urity to the Secretary of the Trea-^ury to furnish and pay, as the 
game may be neces.«ary, one hundred thousand dollars, to be employed in erecting 
the said buildinge 

The bill as amended passed the Senate on September 26, 1789, and 
was sent to the House of Representatives and afterwards the House of 
Representatives amended it by providing- that Congress might hold 
their next session at Philadelphia, and the bill was sent to the Senate 
for their concurrence. 

From this time on the representatives from the States of Maryland 
and Virginia, in the Senate and House of Representatives of the 



PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. 9 

United States, were found doino- evcrvtliin*^ in their power to defeat 
final action looking to the estahlislnnc'nt of the seat of government at 
Germantown, and tinally some of these representatives ehang(>d their 
votes on what was known at that time as the assnmption act, i)roviding 
that the General (xovernment of the United States shonhl assnme the 
indebtedness of the several States. KviMitiiaily. through the successful 
etiorts of Jefferson, Hamilton, Madison, and Washing-ton, the assump- 
tion act was passed and the capital of tlie nation established where 
it is now located. 

The connnittee have called attention to the successful efi'orts of the 
distinguished gentlemen heretofore named for the reason, as appears 
from the public records of the time, that there can be no (piestion hut 
what this matter was successfully carried through and the compromise 
effected by the gentlemen named. We call particular attention to the 
statements of Mr. Maclay, of Pennsylvania, taken from his ]n-ivate' 
journal, in which he says: ''lam fully convinced that i'ennsylvania 
could do no better. It is in fact the interest of the President of the 
United States tnat pushes the Potomac, who by means of Jefferson, 
Madison, Carroll, and others urges the business, and if we had not 
closed with these terms a bargain would have been made for the tem- 
porary residence in New York." 

He again says: '"The President of the United States has, in my 
opinion, had great influence in this business." This was in reference 
to the compromise on the assun^ption act and the location of the 
capital. 

There is not, so far as the committee has been able to discover, any 
public record of any kind which shows that the advances made b}^ the 
States of Maryland and Virginia were regai'ded as loans. It is urged 
by those who favor this measure that the fact that John Marshall, 
afterwards Chief Justice of the United States, because he moved to 
strike out the word "grant " in the title of the act and insert the woi-d 
"advance," shows that it Avas intended that this was to be a loan in 
place of a donation or gift. The committee is satisfied that the reason 
Mr. Marshall made this motion was to have the title of the act con- 
form to the language in the body of said act, where the term "advance" 
appeared and not "grant." Mr. Marshall at the time knew that the 
President of the United States, or the commissioners themselves, had 
no authority whatever to borrow any money, but knew that Congress 
had alread}'^ provided, however, that the commissioners had authority 
to accept grants of money; and if it was the intention of the States of 
Maryland and Virginia that this money was to be regarded as a loan 
is it not strange that they did not require some evidence of indebted- 
ness on the part of the (Tovernment of the United States to either of 
said States, and that they did not rei(uire any security or any interest, 
while Maryland, a few yeai's later, when that State did loan S2()0,000 
to the Government of the United States, demanded gilt-edged security 
and a rate of interest at 6 per centi! In all pul)lic documents, so far 
as the committee have been able to discover, this matter is referred to 
as a grant, gift, or donation, and nowhei'e is it referred to as a loan. 

General Washington calls it a "grant" when drawing his order on 
Virginia, and a "gift" when drawing on Maryland. The law of 
Maryland was the same as Virginia. fJeff'erson calls it at the time a 
"gift" in one letter and a "donation" in another. The conunissioners 
and others, when connnunicating with the authorities of \'ii'ginia. 



10 PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA, 

called it a "donation." It is designated as a "donation"' on their 
books. Mr. Randolph, then Secretary of State, called it a "donation." 

We call special attention to the language used by Mr. Meigs in a 
report from the committee. 

Mr. Meigs, in a report from the Committee on the Expenditures 
upon the Public Buildings, made to the House of Representatives 
March 21, 1820, remarks that— j 

It appears that the valuation of the public lots and actual amount of sales, added 
to the donations frum the i^'tates of Virginia and Maryland, exceed the national 
expenditure upon public buildings by nearly $400,000. (See American State Papers, 
vol. 11, Miscellaneous.) 

and again call attention to the statements heretofore referred to that 
at the time the commissioners of the city of Washington had entered 
.in the books of said city the following entries: 

Donation by the State of Virginia $120, 000 

Donation by the State of Maryland 72, 000 

We also call attention to the entry which appears on page 1 of 
Journal A and of date October 17, 1791, "that (it appears that) the 
State of Virginia subscribed the sum of $120,000 presumably toward 
the erection of the public buildings in the city of Washington," and 
it appears from subsequent entries that this entire amount subscribed 
was paid, as one William Deakins, jr., who was the treasurer of the 
federal commissioners appointed by President W^ashington to lay out 
the city and erect the public buildings, has charged himself with 
sundry payments made by the State of Virginia from time to time on 
account of its donation. Then, in that account there appear the fol- 
lowing statements: 

'•'To the State of Virginia received of Mr. Hopkins, part of its 
donation, $8,585," of date Mai'ch 2, 1795; and again in the same 
account, under date of March 21, 1796, there appears. "To State of 
Virginia received of John Hopkins the balance of the Virginia dona- 
tion, $1,312.06," and the total of all of the items in this account of 
William Deakins, jr., debtor to sundry accounts with the State of Vir- 
ginia, the total amount is $120,000. 

Your committee herewith adopts as a part of its report a portion of 
the report made b}^ the Committee on Claims of the United States 
Senate when this matter was before that body on Januar}' 30, 1852. 

New York and Pennsylvania had gratuitously furnished "elegant 
and convenient accommodations" for the use of the Government dur- 
ing the eleven years that it was located within their respective limits, 
as appears from the resolutions passed b}^ Congress on its removal. 
They had offered to continue to do so. IS'ew Jersey oflered accommo- 
dations at Trenton. The citizens of Baltimore, through their repre- 
sentative, proposed to furnish money for the erection of the necessary 
buildings in that to\\ n for the Federal Government. One hundred 
thousand dollars had been required to be paid by Pennsylvania, or its 
citizens, as a condition of the location of the Government in that 
State. 

This was the state of things when the propositions of Virginia and 
Maryland were brought forward, to advance $192,000, "to be applied 
toward erecting public buildings at the permanent scat of the Govern- 
ment of the United States, on the banks of the Potomac." 

On the 31st of May, 1790, a bill was introduced into the Senate to 
determine "the permanent seat of Congress and the Government of 



PAYMENT OF MONEYS ADVAN("EI> HY MARYLAND AND VIRGINIA. 11 

the I'uitod States,''' On the ^Sth of rhine, this hill heino- under con- 
sideration, memorials were read from citizens of Baltimore and iidiah- 
itants of (ieorj^'etown for the selection of those places, and a motion 
heino" made to insert ''on the river Potomac at some place hetween 
the mouths of the Eastern Branch atid the Connog()clie((ue be, and the 
same is hereby, accepted for the {)ei'manent seat of the (Jovernment of 
the Unit(>d States/' It passed in tlii^ aliirmative. 
The bill was further amended as follows: 

And he it farther enaded, Tliat, for defra_vin^ the expense of wiich purcliases and 
buildinjis tlie President of the United folates be antliorized and requewted to accept 
grants of money, and cause to be borrowed a sum not exceeding one hundred thou- 
sand dollars at an interest not exceeding six per cent. 

In this form the bill was sent to a select committee consistino- of 
Messrs. Butler, of South Carolina; flohnson, of Connecticut; Henry, 
of Maryland; Lee, of Viroinia; and Dalton, of Massachusetts. In 
their report on this part of the bill is the following proposition: 

Your committee further recommend that such sums of money as ma}' be offered 
by the States for the carrying this bill into effect may be accepted of; then the bill 
will read thus: " and to accept grants of monej' or land." 

The bill was accordingly amended by striking out that part which 
authorized the borrowing of money for the erection of the public build- 
ings — 3'eas 19, nays 7. A motion was subsequently made to restore 
the clause "'and cause to be borrowed a sum not exceeding one hun- 
dred thousand dollars at an interest not exceeding six per cent," and 
it was negatived without a division. 

The "act for establishing the temporary and permanent seat of the 
Government of the United States"" passed and was approved by the 
President on the Itlth of July, 17!»(>, fixing the "permanent seat"' on 
the banks of the Potomac, in accordance with the propositions of the 
legislatures of the States of Maryland and Virginia — and the "tem- 
porary seat" at Philadelphia. 

In the act, as passed, no authority was granted to borrow money or 
contract for or accept a loan on any terms, either with or without 
interest. On the contrary, such authorit}^ was expressly denied. It 
is a gencM'al rule that all are bound to take notice of the provisions of 
a public law. P)V the fourth section of the act the President was 
"authorized and recjuested to accept grants of mone}'." And to this 
acceptance of grants his authority was clearly limited. It is not to be 
presumed that the authorities of Virginia did not know or understand 
the provisions of this law. 

Did President Washington transcend these limits, as prescribed by 
Congress, when he received from the States of Virginia and Maryland 
the several sums of mone}^ appropriated by their respective let^isiatures 
"to be applied toward erecting puldic buildings at the permanent seat 
of the Government of the I'nited States on the bank of the Potomac?" 

On the 22d of .January, 1T!»1, as appears by the manuscript records 
in theolliceof the Conuuissioner of Put)lic Buildings. Pi-esident AVash- 
ington appointed Thomas Johnson and Daniid Carroll, of Maryland, 
and David Stuart, of Virginia, conunissioners under the act of IGth of 
Jul}^ 1T*J0, and on the '24th day of the same month he issued his proc- 
lamation tixing the "location of one part of the said district of ten 
miles square" on the Virginia side of the Potomac, and the "other 
part" on the Maryland side. The commi^ioners met on the 12th of 
April, 1791, and proceeded to execute the duties of their trust. Their 



12 PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. 

first object was to locate the city, acquire tlie title to the soil, and fix the 
sites for the principal public edifices. And having" accomplished these 
preliminaries they applied to the President for the necessary funds to 
carry on their operations. As many of the public lots as could be 
properly disposed of were directed to be sold, and the proceeds to be 
placed in the Treasury, and application was made to the President for 
orders on the States of Maryland and Virginia for the payment of the 
installments pledged by those States. In a letter of President Wash- 
ington, addressed to the commissioners, from Richmond, dated 18th of 
April, 1791, he says: 

Agreeable to the assurance given to Mr. Carroll, I applied, immediately upon my 
arrival in this city, to Governor Randolph for $2,000 for federal purposes under your 
direction; although by the law of this State the payments of the $120,000 are to be 
made by installments the governor is well disposed to advance the money at earlier 
periods. 

P. S. — Since writing the foregoing I have again conversed with Governor Randolph, 
and have drawn upon him, payable to your order, for $40,000, being the first 
installment. 

Governor Randolph also wrote to the commissioners acknowledging 
the receipt of the order and sajang that he would meet it as fast as the 
state oi the treasury would allow, and that $1,000 would be paid 
immediately. 

'i'he ommissioners also addressed a communication to the governor 
of Maryland asking for the payment of "money granted" by that 
State. 

On the 6th of June, 1T92, the commissioners wrote to the governor 
of Virginia a>: follows: "There remains behind a part of the Virginia 
donation, which was receivable for the past year, and urging thi neces- 
sity of innnsdiate payment." 

The following, in reference to the second installment of Virginia, 
appears upon the records of proceedings of the board of commissioners 
of the federal city, viz: 

Received sundry letters, and among them oue from the Secretary of State, inclos- 
ing the following order: 

"Philadelphia, Norember 13, 1792. 
"Sir: Be pleased to pay to Messrs. Johnson, Stuart, and Carroll, commissioners of 
the federal buildings on the Potomac, or to their order, or to the order of any two of 
them, the second installment of the moneys granted by the State of Virginia toward 
the said buildings. 

"George Washixgton. 
"The Treasurer op Virginia." 

On the President's order the connnissioners made the following indorsement, and 
delivered it to their treasurer, to wit: 

"Pay the contents to Col. William Deakins, or order. 

"Daviu Stuart, 
"Daniel Carroll, 

" Commissioners." 

This order was forwarded to the commissioners inclosed in a letter 
from Thomas Jcficrson, then Secretary of State, in which he .says, " I 
have the honor to inclose you the President's order on the treasurer of 
Virginia for the second installment of the money given by that State 
(see manuscript letter of Mr. flefi'erson, dated the loth of November, 



PAYMENT OF MONEYS ADVANCKD l^Y MARYLAND AND VTROINIA. 13 

1792, on tile in tho office of Commissioner of Public P)uil(lin(,'-s). A 
similar record appeal's in reference to the payments of Maryland, viz 
(recordsof proceedings of the hoard of commissioners, pp. 70 and 170): 

riiiLAUiCLi'iiiA, Derciiihcr ^7, 17!>1. 
Sir: Re pleased to pay to Tlioiiuis Johnson, David Stuart, and Daniel Carroll, eeqs. 
Conimissioiiers of the Federal District, or to their order, or to the order of any two 
of them, $LM,000, <^iven hy the asHeinl)ly of Maryland toward defrayinj,' the expenses 
of the public buildinga within said district. 

GeoKGE WASniNOTON. 

To Thomas Howard, Esq., 

Treai^tmr of the Western Shore of Mari/land. 

This order was indorsed by thecommissioners to William Deakins, jr.. 
their tn^isurer, and upon it the money appears to have been paid. 
This \yould seem to settle very clearly the understandino- of (leneral 
Washinoton, Mr. JclTerson. and of the executive officers of Maryland 
and \'iroinia of the nature of the " advance" made by those States. A 
isin)ilar order for "the third installment of the sura given by the assem 
bly of Maryland,'"' etc., was given by General Washington, dated Mai'ch 
2, 1793. ■ ■ 

On the 7th of February, 1793, the commissioners, in a commimi- 
cation to Mr. Jetierson, say: "'We have as yet received oidy §10,000 
on the President's second draft on Virginia. " We have to-day written 
to the executive of Virginia requesting a payment of the balance.'' 

They also addressed urgent memorials to the governor and to the 
assembly of \'irginia earnestly and repeatedly soliciting the payment 
of installment.s of the " donation of Virginia" and the '' Virginia dona- 
tion toward erecting the public buildings." In the records and books, 
and in the correspondence of the commissioners, whether with the 
President, the governor of Virginia, the general assembly of that 
State, or with other persons, whenever this fund is alluded to, it is 
designated as the "donation," "grant," or "gift" of Virginia. 

Mr. Edmund Randolph, Secretary of State, in a letter to the com- 
missioners dated August 21, 1791, says, "I have this day written to 
the governor and treasurer of Virginia, stimulating them to the pay- 
ment of the arrears of the donation. Perhaps you had better add a 
representation of the necessity of the federal city for such a supply." 

The foregoing history of the early legislation upon the subject 
clearly proves, in the judgment of the committee, that Virginia 
intended the said sum of $12W,0'^>'* ii« fi gift or donation, and not alone, 
because — 

1. No time or manner of repayment is provided for. 

2. The President of the United States had no authority to borrow 
money or contract foi- a loan. He was only authorized to accept 
grants of money. 

3. The oti'er of Virginia of the said sum was conditional, provided 
the seat of government was located near or within her territorial lim- 
its; and it was made after Penns3dvania and Baltlmoi-e had oti'ered 
donations or gifts, and when there was a strong probability that Ger- 
mantown would be agreed upon as a site. There is no reason to infer 
that \'irginia would have advanced that or any other sum if the seat 
of government had remained at Philadelphia or had been located at 
Gerraantown. 



14 PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. 

In view of the foregoing history, fact:«i, and considerations, the com- 
mittee conclude and decide that if the United States could be sued 
the claimants could not recover, either in a court of law or equity. 

The question then arises whether, considering the sum advanced to 
be a "gift" or "donation," it should be repaid. As such its repay- 
ment is not asked, and therefore the connnittee do not undertake to 
decide the question, but refer it to the judgment of the Senate. 

The committee, however, are unanimously of opinion that if, look- 
ing to all the circumstances of the advance made by Virginia, and 
viewing it as a ''donation" or "grant," the Senate should determine 
that it is just and proper to repay the same, then the sum of $72,000 
advanced by Maryland should also be repaid, and a reasonable com- 
pensation made to the States of New York and Pennsylvania for the 
use of theii- pu!>lic ])uildings by Congress and the public officers prior 
to the removal of the seat of government to Washington. 

The records show that Congress and the public officers occupied the 
public buildings litted up by and belonging to the State or city of New 
York, for a period of about one year atid six months, and the public 
buildings in Philadelphia, then belonging to the State of Pennsylvania, 
from the 6th of December, 1790, to about the close of the year 1800, a 
period of about ten years. It is believed that |20,000 would be a 
reasonable compensation to bo offered to New York, and $100,000 to 
the State of Pennsylvania. It does not appear that either State ever 
received anything more than thanks. 

At that time the State of Virginia was not making any claim in her 
own name for reimbursement, as the State had transferred its interest 
in the matter to the Orange and Alexandria Railroad Company, and 
said railroad company in its own name was asking to be awarded 
$120,000 for the use and benefit of said railroad company. 
!r The committee also call the attention of the House to the fact that 
the State of Virginia is not now claiming that the United States Gov- 
ernment owes her any amount whatever. The claim that is before 
Congress at this time is presented on behalf of the Mount Vernon 
Association, and they ask this donation at the hands of the Govern- 
ment for the erection of a public highway between Washington City 
and Mount Vernon. 

Your committee is clearly of the opinion that there is no legal or 
equitable liability on the part of the (jovernment of the United States 
in favor of either the State of Maryland or Virginia, and from the 
evidence presented in this case the conuuittee are unanimously of the 
opinion that neither Maryland nor Virginia at the time that these 
moneys were advanced expected that this act would create any liability 
on the part of the Government of the United States to return any of 
the moneys to either of the States, and that their sole object in offer- 
ing to advance the moneys heretofore referred to and to grant lands 
was for the purpose of securing the location of the capital within their 
territory, which they believed would be of great benefit to their peo- 
ple, and that in making the offer which they did they were simply try- 
ing to meet the competition of other States which were trying to secure 
the capital foi' the benefit of their people. 

The committee regard it as remarkable that these States should now 
claim that this was a loan in view of the fact that no one was seeking 



PAYMENT OF MONEYS ADVANCED BY MARYLAND AND VIRGINIA. 15 

to borrow monoy from thoiii at the time, to wit. in i7l>i», aiul that at 
that time the records of the department show that the State of Vir- 
g'inia was indebted to the United States in the simi of mori; than 
^200,000; and althouoii since that time there liave been settlements at 
various times between the (general Uovornment and these two States, 
yet at no time from 17l»() until now has either of these States in any of 
the settlements that have ever been made chiimed that they were entitled 
to credit in said settlements by reason of the advances of money made 
for public buildino- purposes in Washino-ton. 

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